Some rental investors wonder if they’re really helping sellers who are facing bankruptcy when they go to them and offer them a particular price for their home. They think that because they’re not offering them the perfect solution, or market value price, that they’re not helping them. However, the sellers are not in the perfect condition. For one reason or another, they’re not able to make payments on their home any longer. As it stands, they could never get full price for their home, their staring foreclosure face-to-face, and it’s just a matter of time before their home is sold at an auction.
Therefore, approaching sellers who’ve already filed for bankruptcy and are awaiting the auction date, can serve you and the sellers quite well.
The foreclosure process is long and drawn out
Oftentimes, foreclosure is a long, drawn-out process for the sellers. It can give them many headaches, and can be heartbreaking. They don’t want to lose their home and they certainly don’t want to mess up their credit for 7 years. So, when you go to motivated sellers who are facing foreclosure, it can be a win-win situation for both.
Some sellers aren’t aware that they can still sell their home after they filed for bankruptcy. They have up until that home is sold at auction to pay the lender back payments, penalties, and the balance of the loan. This period is known as pre-foreclosure, and many sellers would be happy if you would reach out to them during this time.
The benefits of helping sellers in foreclosure
Let’s say a couple owes the bank $150,000 for their home. They’re also $4,000 behind in payments. They don’t feel as if they have a choice, so they file for bankruptcy. Now, you reach out to them and tell them you’re an investor interested in helping them out. You’re interested in helping them get caught up with their payments and making that monthly mortgage payment for them. You explain the plan and the process, sharing with them the many benefits they will receive, such as:
- Stopping the foreclosure
- Helping their credit score remain the same and increase as you make payments
- Save them from being evicted
- Saves them from a deficiency judgement
- Saves them from losing more money
- Gives them hope
Do you see how you are not taking advantage of them? You are providing them high quality service that has plenty of benefits for them. You’re treating them as you would want to be treated. It’s a win-win situation for all.
You’re running and investment company, and I teach my students to always do what is ethical and legal. Helping those who find themselves facing foreclosure is a great way to spend your time! You’d be surprised just how grateful motivated sellers are when they see and experience the benefits associated with a Subject To purchase agreement.
So, the next time you catch yourself wondering if you’re actually helping sellers in foreclosure or not, remember that you are helping them. In fact, I’ve got plenty of clients who share their stories when it comes to helping motivated sellers the best way they can given the position that the sellers find themselves in.
Request FREE Funding Kit and Discover How To Legally Bypass Banks And Gain Direct Access To "No-Credit-Required" Funding You Can Use To Achieve Your Financial Freedom... Start Now!
